Online Advertising: Jargon Buster

Marketing, March 21, 2007 | Go to article overview
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Online Advertising: Jargon Buster


Don't know your interstitials from your skyscrapers? Here's a comprehensive guide to online advertising terminology.

Ad serving - Delivery of online ads to a consumer's computer via an ad-management system. The system allows different ads to be served to different audiences simultaneously as well as serving ads across multiple sites. Advertising technology providers each have their own proprietary models.

Banner - A long horizontal online ad usually found running across the top of a page, in a fixed position.

Behavioural targeting - A form of online marketing that uses advertising technology to target web users based on their previous behaviour Advertising creative and content can be tailored to a particular user by capturing their previous decision-making behaviour and looking for patterns.

Blog - An online space that is regularly updated, featuring the opinions or activities of groups or individuals.

Button - A square online ad usually found embedded within a web page.

Broadband - An internet connection that is always on and delivers a higher bit-rate (128kbps or more) than a standard dial-up connection. It allows for a better online experience as pages load more quickly and items can be downloaded faster.

Clickthrough - When a user interacts with an ad and clicks through to the advertiser's website.

CTR (clickthrough rate) - Frequency of clickthroughs as a percentage of impressions served, used as a measure of advertising effectiveness.

Contextual advertising - Advertising targeted to the viewer based on the content on the web page at that specific time.

Conversion rate - Measure of success of an online ad when compared with the clickthrough rate. What constitutes a 'conversion' depends on the marketing objective - it can be defined as a sale or request to receive more information, for example.

CPA (1 - cost per action) - A pricing model that charges advertisers only if a viewer takes an action, such as buying a product or filling in a form.

CPA (2 - cost per acquisition) - Cost of acquiring a new customer.

CPM (cost per mille) - Also known as cost per thousand. Online advertising can be purchased on the basis of what it costs to show the ad to 1000 viewers. It is used as a benchmark to calculate the relative cost of a campaign or an ad message in a given medium.

Embedded format - Advertising formats that are displayed in set spaces on a publisher's page.

Expandable banner/skyscraper - Fixed online advertising placements that expand to fill the entire page in response to user action.

Flash - Web-design software that creates animation and interactive elements that are quick to download.

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